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** Declining-balance method for determining **

** Declining-balance method for determining depreciation **

** Depreciation methods declining balance **

The declining-balance method of depreciation allows equipment or plant to be depreciated by a greater amount during the earlier years than during the later years. This method does not allow equipment or plant to be depreciated to a zero value at the end of the service life. [Pg.806]

A plant costs 6,000,000 and is expected to last 6 years. Its salvage value is negligible. Calculate the rate of depreciation using the double declining balance method. [Pg.344]

But earnings are not the only consideration. In 1968 the Union Carbide Corporation, along with many other companies, had a very bad year financially. In order to make its financial picture look better it switched from the double declining balance method of depreciation to the straight-line method. This reduced expenses (deprecitation being considered an expense) and hence increased profits. This is a semipermanent move, however, since a return to the double declining balance method would require approval of the Internal Revenue Service. [Pg.348]

Problem 2. Why is the salvage value not considered when depreciation for the double declining balance method is calculated ... [Pg.351]

It has a salvage value of 2000,000 and a net salvage value of 1,200,000. Assume the plant will last 7 years. Use (a) straight-line depreciation (b) double declining balance method (c) sum of the years-digits method... [Pg.351]

The MACRS went into effect in January 1987 (Couper, 2003) with six asset recovery periods 3, 5, 7, 10, 15, and 20 years. It is based upon the declining-balance method. The equation for the declining-balance method is... [Pg.21]

For 150 percent declining balance/ = 1.5, and for 200 percent/ = 2.0. These factors are applied to the previous year s remaining balance. It is evident that the declining-balance method will not recover the asset that the IRS permits. Therefore, a combination of the declining-balance and straight-line methods forms the basis for the MACRS. [Pg.21]

Corrosion economics and corrosion management forms the theme of the fifth chapter. Discounted cash flow calculations, depreciation, the declining balance method, double declining method, modified accelerated cost recovery system and present worth calculation procedures are given, together with examples. In the second part, corrosion management, including the people factor in corrosion failure is briefly presented. Some of the expert systems presently available in the literature are briefly discussed. [Pg.582]

Comparison of straight-line, multiple straight-line, sum-of-the-years-digits, and declining-balance methods for determining depreciation. [Pg.279]

When the declining-balance method is used, the annual depreciation cost is a fixed percentage of the property value at the beginning of the particular year. The fixed-percentage (or declining-balance) factor remains constant throughout the entire service life of the property, while the annual cost for depreciation is different each year. Under these conditions, the depreciation cost for the first year of the property s life is Ff, where f represents the fixed-percentage factor. At the end of the first year... [Pg.280]

Types of declining-balance methods for determining depreciation. [Pg.281]

A property has an initial value of 50,000, service life of 20 years, and final salvage value of 4000. It has been proposed to depreciate the property by the text-book declining-balance method. Would this method be acceptable for income-tax purposes if the income-tax laws do not permit annual depreciation rates greater than twice the minimum annual rate with the straight-line method ... [Pg.293]

When the fraction r is chosen to be 2/s, i.e., twice the reciprocal of the service life s, the method is called the double-declining-balance method. [Pg.630]

ItBased on the 1954 tax revision for depreciation accounting, any method could be used if the depreciation for the first two-thirds of the usefid life of the properly did not exceed the total of such allowances if they had been computed by the double declining-balance method. [Pg.281]

Debits in bookkeeping, 143-144 Declining-balance method for determining depreciation, 280-282 Deferred annuity, 230 Definitive estimate, 162 Deflation (see Inflation)... [Pg.900]

The declining-balance method is an accelerated depreciation schedule that allows higher charges in the early years of a project. This helps improve project economics by giving higher cash flows in the early years. In the declining-balance method, the annual depreciation charge is a fixed fraction, Fj, of the book value ... [Pg.355]

Pd Fraction of book value depreciated each year in declining balance method —... [Pg.390]

The rate of depreciation, dj, is the same for each year, j however, the depreciation charges decrease each year because the book value decreases each year. For a declining balance method, the depreciation... [Pg.737]

** Declining-balance method for determining **

** Declining-balance method for determining depreciation **

** Depreciation methods declining balance **

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